Correlation Between Vitalhub Corp and GE HealthCare

Can any of the company-specific risk be diversified away by investing in both Vitalhub Corp and GE HealthCare at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Vitalhub Corp and GE HealthCare into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Vitalhub Corp and GE HealthCare Technologies, you can compare the effects of market volatilities on Vitalhub Corp and GE HealthCare and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Vitalhub Corp with a short position of GE HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vitalhub Corp and GE HealthCare.

Diversification Opportunities for Vitalhub Corp and GE HealthCare

-0.76

Correlation Coefficient

Vitalhub Corp  GE HealthCare

Pay attention - limited upside

The 3 months correlation between Vitalhub and GEHC is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Vitalhub Corp and GE HealthCare Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GE HealthCare Techno and Vitalhub Corp is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Vitalhub Corp are associated (or correlated) with GE HealthCare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GE HealthCare Techno has no effect on the direction of Vitalhub Corp i.e., Vitalhub Corp and GE HealthCare go up and down completely randomly.

Pair Corralation between Vitalhub Corp and GE HealthCare

Assuming the 90 days horizon Vitalhub Corp is expected to under-perform the GE HealthCare. In addition to that, Vitalhub Corp is 2.98 times more volatile than GE HealthCare Technologies. It trades about -0.11 of its total potential returns per unit of risk. GE HealthCare Technologies is currently generating about -0.01 per unit of volatility. If you would invest  8,190  in GE HealthCare Technologies on October 9, 2024 and sell it today you would lose (31.00) from holding GE HealthCare Technologies or give up 0.38% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Vitalhub Corp  vs.  GE HealthCare Technologies

Vitalhub Corp

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Vitalhub Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental drivers, Vitalhub Corp reported solid returns over the last few months and may actually be approaching a breakup point.

GE HealthCare Techno

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GE HealthCare Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Vitalhub Corp and GE HealthCare

The main advantage of trading using opposite Vitalhub Corp and GE HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vitalhub Corp position performs unexpectedly, GE HealthCare can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in GE HealthCare will offset losses from the drop in GE HealthCare's long position.

The idea behind Vitalhub Corp and GE HealthCare Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.